Hi all,
I am using the ivreg estimation in one of my models but I don't know if there
is a way to apply a different restriction on the dependent variable and the
instrumented variable. For example, if
Y1=b1X1+b2X3+e and
Y2=a1Y1+a2X2+e
and if I need to restrict Y1 say to only poorly performing firms but want to
run the second stage with full sample, is there a way to specify while using
the ivreg command in STATA one if[poor performers] condition to the first
part and other if[all firms] condtion to the second part? Using a dummy for
poor performers only does not quit do the job.
Right now the syntex is
ivreg Y2 X2 (Y1=X1 X3) if [exp]
and STATA applies that condition to both Y2 and Y1 samples.
Thanks
Shahbaz
_____________________________________________
PhD Candidate
Brandeis International Business School
Brandeis University
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